We have a claim on BAP Policy. The loss was a result of an incidental mechanical fire because the insured's equipment (the brakes) overheated and as a result, caught the trailer and excavator on fire. The insured was up-to-date with maintenance, inspections and registration. The insured advised there were no recent repairs done to the trailer within the past year. Additionally, there were no recent issues with the trailer at all. In effect, the fire was completely incidental and unpreventable.
Fire loss is covered under the insured's comprehensive coverage and per the above, would be considered a no-fault, comprehensive loss.
The NYS Thruway Authority submitted a bill to the carrier for lane and shoulder closure and to provide protection for fire and EMS personnel, copy attached.
Per the adjuster, the policy pays for property damage or bodily injury that the insured legally owes as a result of an accident. Unfortunately, the charges do not constitute either property damage or bodily injury as they are defined in the policy, thus we are unable to provide payment for this bill.
I am looking for an opinion on this claim.
New York Subscriber
These expenses should be included as part of the loss settlement since the loss itself was a specified covered cause of loss. The fire loss was covered under comprehensive and since there was a fire it was necessary to bring in fire and EMS personnel, and the lane closure was necessary to bring such personnel in to the scene of the accident and to protect the auto from further damage. There is no exclusion in the policy that would preclude coverage for this part of the loss settlement.